Connect with us

International Circuit

South Korea unveils ambitious $6.94 billion investment in AI technology

South Korean President Yoon Suk Yeol announced on Tuesday a substantial investment in artificial intelligence technologies. By 2027, South Korea plans to allocate 9.4 trillion won ($6.94 billion) towards developing cutting-edge AI applications in semiconductors.

This initiative includes a separate 1.4 trillion won fund dedicated to nurturing AI semiconductor companies. President Yoon’s declaration aligns with South Korea’s strategy to remain competitive against major economic powers such as the United States, China, and Japan.

These countries have also ramped up their domestic policies to strengthen their own semiconductor industries, vital components of their national economies.

Strategic Investments and Economic Implications
The recent announcement underscores the significance of semiconductors in South Korea’s export-driven economy.

Notably, in March, semiconductor exports surged to $11.7 billion, marking their highest level in 21 months and accounting for nearly a fifth of total exports from Asia’s fourth-largest economy. “Current competition in semiconductors is an industrial war and an all-out war between nations,” President Yoon remarked during a meeting with policymakers and industry leaders.

South Korea’s strategic financial commitment is set to expand research and development in specialized AI chips, such as artificial neural processing units (NPUs) and advanced high-bandwidth memory chips. Additionally, the government plans to foster the growth of next-generation artificial general intelligence (AGI) and safety technologies, potentially setting new industry standards.

President Yoon has also articulated a vision for South Korea to secure a top-three position in global AI technology by 2030, aiming to capture at least 10% of the global system semiconductor market. He confidently asserted, “Just as we have dominated the world with memory chips for the past 30 years, we will write a new semiconductor myth with AI chips in the next 30 years.” In light of recent global events, such as the earthquake in Taiwan—a key player in the semiconductor market—President Yoon assured that the impact on South Korean companies was currently minimal. However, he has mandated thorough preparations to mitigate any future uncertainties that might affect the industry. Financial World

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!